A two-decade decline in the Tokyo housing market looks set to be reversed, as investors are drawn by condo selling prices up 10.8% annually
After a two-decade slump in real estate sales, investors are finally returning to Tokyo, Japan, reports the Wall Street Journal.
According to figures released by the by local think tank, the Real Estate Economic Institute Co., the average selling price for all types of condominiums in the centre of the city increased by 10.8% in 2013 from the previous year. Yet more encouraging is the fact that this rise came in the midst of a 46% increase in supply of new units to 28,340.
Years of steep price rises in other Asian cities, coupled with the fall in the value of the yen over the past 24 months mean that for the first time Tokyo, once one of the most expensive cities in the world, is able to offer bargain options to investors as well as strong prospects of appreciation with the Olympics arriving in 2020. Global real estate group JLL estimates that prices of condos in brand-new buildings on prime city blocks are 30-40% higher in Singapore and 70% higher in Hong Kong than in the …read more